Can You Buy IKEA Stock? Here’s What You Need To Know

Jenna Gleespen - July 02, 2021

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Nearly the entire world knows the name IKEA.

The Swedish furniture company is known worldwide for their do-it-yourself furniture, meatballs, and their iconic stores.

IKEA has been the world’s largest furniture retailer for nearly 15 years, and its approach to interior design will continue to propel its growth for years to come.

If you’re interested in investing in IKEA stock, we’ve gathered all the facts and figures you need to know about the multinational giant.

Ikea Stock

Can You Buy IKEA Stock?

At this point in time, IKEA stock information is unavailable as the company is not publicly traded.

The company is privately held, and the foundation that holds the company has no plans of an initial public offering.

Without an IPO, there is no available stock information, no way to buy IKEA stock as it isn’t available on the stock exchange, nor does it have a stock symbol.

Can You Buy IKEA Stock? IKEA Stock Price

There is not a stock price associated with IKEA, nor is there any available stock information, as the company is not publicly traded.

The company is owned by a private foundation that has only one goal; to preserve the legacy of the IKEA concept.

Because of this, it is unlikely that IKEA will ever be publicly traded.

IKEA Stock: Who Owns IKEA

IKEA is actually owned by two entities; INGKA Holding B.V. and the Interogo Foundation.

The business model is quite complex and makes it hard to keep track of exactly who owns the giant corporation.

To put it simply, INGKA Holding is the owner of the IKEA Group, and they are responsible for the IKEA centers, retails, customers, and services related to IKEA products.

IKEA stock: INGKA

The Interogo Foundation owns the Inter IKEA Systems, which are responsible for the design, manufacturing, and supply of IKEA products.

IKEA stock: Interogo

IKEA is essentially split into two divisions; the storefront and all related services (The IKEA Group), and product development and supply (Inter IKEA systems).

Together, the two divisions make up the giant that is IKEA.

Can You Buy IKEA Stock? IKEA Background: What Is It

IKEA is the furniture giant that we all know, and a company that most people seem to love.

IKEA is well known for its modernist furniture designs, its affordable household products, and (in the United States) its cafeteria and food options.

Most major cities have a local store that serves them and the surrounding smaller towns.

IKEA continuously researches and innovates, and prides itself on efficiency and high service standards.

However, it’s important to understand that IKEA didn’t start off as the giant that it has become. The corporate giant comes from humble beginnings.

IKEA Stock: A Brief History of IKEA

Founded in 1943 by Ingvar Kamprad, IKEA started off as a small mail-order business based in Älmhult, Sweden.

Originally, the business sold small goods, like pens, wallets, and picture frames.

Within five years, the success that the small company saw influenced it to move to larger products, and it began carrying furniture.

An iconic name, IKEA is derived from the founder’s, Ingvar Kamprad, initials, as well as the initials of the farm he grew up on, Elmtaryd, and the nearby village of Agunnaryd.

 Älmhult, where the IKEA headquarters is still located, is located in a more remote area of Sweden, and due to the difficulty of reaching potential customers, IKEA developed the first IKEA catalog in 1951.

IKEA stock

Ingvar’s goal had become making beautiful furniture affordable to anyone who wanted to buy it.

Shortly after the success of the IKEA catalog, Ingvar opened the first IKEA store in  Älmhult in 1958.

The original IKEA showroom was necessary due to the public’s skepticism of IKEA’s low prices.

Many believed that the furniture had to be low-quality to be priced so low. Ingvar’s response was to show them in person just how high-quality the furniture was.

The success of the first showroom and IKEA store caused the success of IKEA to skyrocket, and within the next ten years, new stores were opening in other Scandinavian countries, like Norway in 1963 and Denmark in 1969.

Every few years following, another IKEA store would open in another region of the world. IKEA opened stores in Canada prior to the United States, in fact.

Eventually, the furniture maker reached 52 countries with 446 individual locations. IKEA plans to open in a 53rd country by the end of 2021, as well.

IKEA Stock: Unique Storefronts Make Unique Experiences

IKEA heavily draws on their do-it-yourself business model, and their locations tend to heavily reflect that.

Each store is comprised of a showroom that can feel like a maze at times, displaying all of the furniture and home furnishings that are able to be purchased in the store.

Each item has a unique bin number or code attached to it, and customers write the information down for all of the parts they’ll need to complete their furniture.

Following the showroom, customers are led to a self-service warehouse where they’re provided carts and flat dollies to pick up all of the pieces of the furniture that they have picked out.

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IKEA stock

True to form, IKEA stores have innovated further than just a do-it-yourself shopping experience.

All stores also include a restaurant or cafe that sells Swedish prepared food as well as local favorites, like poutine in Canada.

In many cases, the foodservice portions of IKEA stores do quite well, accounting for 5% of the company’s sales.

Another unique experience offered by the IKEA store is the kid’s play area called Småland, which is Swedish for small lands.

IKEA stock: Smaland

The play area allows kids to have much-needed playtime that they can’t otherwise get if they are shopping with their parents.

The Småland space in IKEA is staffed and children are attended until the parents are finished shopping, and pick the children up.

The company has also continued with the catalog model that it originated with decades ago, but has changed the model slightly.

IKEA moved towards creating a more customer-oriented experience, and created the IKEA family card, as well as designed a quarterly magazine for the members of the IKEA family, specifically.

The magazine centers around home design and home life, and is targeted towards customers looking to redesign or renovate their homes.

The card also allows customers to save money on each transaction made in the store.

Can You Buy IKEA Stock? Criticism in the US

Despite the company’s high-quality home furnishings, home furniture, as well as office furniture, IKEA suffers from criticism in the United States.

Though there are people who swear by it, IKEA is typically not as well-received as its competitors and is more often the butt of the joke in American comedy than it is praised for its innovation.

IKEA Stock: Why Is IKEA Valuable?

IKEA has made itself one of the most valuable furniture companies in existence through its dedication to innovation and design.

The company prides itself on delivering a high-quality product that any consumer can put together themselves for a price that’s affordable.

Due to their consistent research and development, IKEA is able to lower the cost of products by an average of two to three percent each year, making them a very attractive option for anyone searching for new furniture.

In addition to this, IKEA has made themselves valuable through the use of their website.

While the IKEA website itself does not do very well in the United States, it’s fairly popular worldwide due to the plethora of features that it allows users to utilize.

Additionally, the website houses products that are not available in all stores, and catalogs nearly 12,000 unique products. In a one-year period, IKEA’s website sees over 2 billion users on average.

Can You Buy IKEA Stock? IKEA Competitors You Can Buy

Unfortunately, IKEA is not a publicly traded company, and its stock is unable to be purchased.

That being said, IKEA has competitors who are publicly traded who, while not as popular as the furniture giant, are still successful examples and have publicly traded stocks.

Wayfair Inc. (NYSE: W)

Wayfair is an American furniture company, and a direct competitor of IKEA.

Ikea Stock competitors

Wayfair is one of the most popular e-commerce websites in the United States, having nearly 80 million visitors to the website in 2020.

Out of those 80 million visitors its estimated that nearly 30 million were active customers, having made a purchase while visiting the website.

For a period of time, Wayfair was experiencing losses rather than gains, and the company’s future was unsure.

However, throughout 2020, the company saw massive increases in growth, with figures topping what they had in years prior.

It’s entirely possible that these figures grew at such an astonishing rate entirely due to the pandemic, and we’ll see how the company continues to fare as time moves forward.

TJX Companies Inc. (NYSE: TJX)

In the United States, TJX Companies is one of IKEA’s largest direct competitors.

IKEA stock alternatives

The TJX Companies umbrella covers three major home furnishings stores in the country; HomeGoods, Homesense, and Sierra.

In addition to these names, other retailers that fall under the umbrella, like Marshalls and TJ Maxx, sell household goods that are available in IKEA, as well.

The one thing that all TJX Companies brands have in common is their business model.

They take name-brand products and offer large discounts on them, making them affordable to the everyday consumer.

The company is able to offer these discounts because of its connections with vendors across the world.

Overall, TJX Companies is made up of over 4,500 storefronts in 9 different countries.

They aren’t quite the megalith that IKEA is, but their company still shares an impressive part of the market with how diversified they are.

Amazon.com Inc. (NASDAQ: AMZN)

In today’s market, Amazon is nearly every company’s competitor, no matter the niche.

IKEA stock alternatives

Amazon’s advantage over most companies is the fact that it doesn’t have a physical storefront and is consisted of only a website, but when competing with IKEA, this is in fact a weakness.

IKEA’s place in the world can be attributed specifically to the IKEA store itself.

That being said, Amazon is able to give the Swedish giant a run for its money based on their sale prices alone.

Amazon is able to take nearly any product on the market, furniture included, and create it at a cost that’s a fraction of their competitors, then sell it for far less, as well.

The portion of IKEA’s business model that would actually benefit Amazon is a storefront showcasing the quality of the products being sold.

When ordering from the Amazon website, one of the top questions on any unrated product questions the quality of the item.

IKEA Stock: What Is IKEA Worth?

While IKEA has massive revenue from year to year, the value of the company actually peaked years ago, and has fallen since.

In terms of revenue, the company reported $48 billion of annual revenue in 2020, even amidst the pandemic.

The loss was able to be tracked, with 2019’s figures showing annual revenue of over $50 billion.

That being said, the company’s annual revenue in 2010 was just shy of $29 billion, showing massive leaps in revenue generation in just a decade.

In terms of net income, the company seemingly peaked in 2016 with a net income of just over $5 billion.

Since then, net income has dropped sharply, with 2020’s annual net income at $1.44 billion.

If IKEA were publicly traded, the company would have to speak to such an enormous loss.

However, since IKEA is not available on any stock exchange, the company can continue to do business as it sees fit.

IKEA Stock: Final Thoughts?

IKEA is an international company that has fostered strong brand loyalty through a dedication to creating high-quality products at a low price.

The company spends their time conducting research and development on nearly all of their products, both new and seasoned, in order to make sure that they can offer the lowest prices possible to their customers while still providing the excellent services they’re known for.

This ability to provide a good product at an affordable price has led them to the success that they are known for today.

The company is not currently offered publicly on the stock market, and there is no date set for an IPO.

Being that IKEA is owned by two companies who have been tasked with keeping the values of IKEA in order, it is highly unlikely that the company will go public.

That being said, there are a handful of competitors, like Wayfair and TJX, that have stocks available for trading, and that have been seeing renewed success in recent years.

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Jenna Gleespen is a copywriter specializing in finance and investment finance. Originally from the United States, she now calls London, England home.